SECOND REGULAR SESSION
SENATE BILL NO. 759
101ST GENERAL ASSEMBLY
INTRODUCED BY SENATOR HOUGH.
3894S.01I ADRIANE D. CROUSE, Secretary
AN ACT
To repeal section 32.087, RSMo, and to enact in lieu thereof one new section relating to local sales
taxes.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 32.087, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 32.087, 2
to read as follows:3
32.087. 1. Within ten days after the adoption of any 1
ordinance or order in favor of adoption of any local sales 2
tax authorized under the local sales tax law b y the voters 3
of a taxing entity, the governing body or official of such 4
taxing entity shall forward to the director of revenue by 5
United States registered mail or certified mail a certified 6
copy of the ordinance or order. The ordinance or order 7
shall reflect the effective date thereof. 8
2. Any local sales tax so adopted shall become 9
effective on the first day of the second calendar quarter 10
after the director of revenue receives notice of adoption of 11
the local sales tax, except as provided in s ubsection 18 of 12
this section, and shall be imposed on all transactions on 13
which the Missouri state sales tax is imposed. 14
3. (1) Every retailer within the jurisdiction of one 15
or more taxing entities which has imposed one or more local 16
sales taxes under the local sales tax law shall add all 17
taxes so imposed along with the tax imposed by the sales tax 18 SB 759 2
law of the state of Missouri to the sale price and, when 19
added, the combined tax shall constitute a part of the 20
price, and shall be a debt of the purchaser to the retailer 21
until paid, and shall be recoverable at law in the same 22
manner as the purchase price. The combined rate of the 23
state sales tax and all local sales taxes shall be the sum 24
of the rates, multiplying the combined rate times the a mount 25
of the sale. 26
(2) In addition to any local sales tax imposed or 27
authorized under the local sales tax law as of January 1, 28
2023, any taxing jurisdiction may impose one or more sales 29
taxes on all retail sales made in such taxing jurisdiction 30
which are subject to taxation under the provisions of 31
chapter 144 for any purpose designated by the taxing 32
jurisdiction in its ballot of submission to its voters; 33
provided, however, that no sales tax shall be effective 34
unless the governing body of the taxing jurisdiction submits 35
to the voters of the taxing jurisdiction, at a state general 36
election, a proposal to authorize the taxing jurisdiction to 37
impose a tax under the provisions of this subsection. The 38
taxes authorized by this subsection shall b e in addition to 39
any and all other sales taxes allowed by law. 40
(3) The ballot of submission shall contain, but need 41
not be limited to, the following language: 42
If you are in favor of the question, place an 48
"X" in the box opposite "YES". If you are 49
43
44
45
46
Shall .......... (taxing jurisdiction's name)
impose a sales tax at the rate of ...... (insert
amount) for the purpose of ............. (insert
purpose)?
47 □ YES □ NO SB 759 3
opposed to the question , place an "X" in the box 50
opposite "NO". 51
If a majority of the votes cast on the proposal by the 52
qualified voters voting thereon are in favor of the 53
proposal, then the sales tax shall be in effect. If a 54
majority of the votes cast by the qualified voter s voting 55
are opposed to the proposal, then the governing body of the 56
taxing jurisdiction shall have no power to impose the sales 57
tax authorized by this subsection unless and until the 58
governing body of the taxing jurisdiction shall again have 59
submitted another proposal to authorize it to impose the 60
sales tax under the provisions of this subsection and such 61
proposal is approved by a majority of the qualified voters 62
voting thereon. 63
(4) Sales taxes imposed or authorized under the local 64
sales tax law as of January 1, 2023, and under the 65
provisions of this subsection shall not exceed the following 66
amounts: 67
(a) For local sales taxes imposed and retained by a 68
taxing entity that is incorporated as a city, town, or 69
village, the total combined rate shall not exceed four and 70
one-half percent; 71
(b) For local sales taxes imposed and retained by a 72
county, excluding cities not within a county, the total 73
combined rate shall not exceed four and one -half percent; 74
(c) For local sales taxes imposed and retained by a 75
city not within a county, the total combined rate shall not 76
exceed nine percent; 77
(d) For local sales taxes imposed and retained by all 78
taxing jurisdictions other than those described in 79
paragraphs (a) to (c) of this sub division, the total 80 SB 759 4
combined rate of sales taxes in any given taxing 81
jurisdiction shall not exceed three percent. For the 82
purposes of this paragraph, local sales taxes imposed by 83
taxing entities described in paragraphs (a) to (c) of this 84
subdivision in a given taxing jurisdiction shall not be 85
included in the calculation of the total combined rate of 86
sales taxes under this paragraph. 87
(5) (a) In any election in which more than one sales 88
tax levy is approved by the voters, and the passage of su ch 89
levies results in a combined rate of sales tax in excess of 90
the limits provided for under subdivision (4) of this 91
subsection, only the sales tax levy receiving the most votes 92
shall become effective, provided such levy does not result 93
in a combined rate of sales tax in excess of the limits 94
provided for under subdivision (4) of this subsection. 95
(b) No taxing jurisdiction with a combined rate of 96
sales tax in excess of the rates provided in subdivision (4) 97
of this subsection as of August 28, 20 22, shall be required 98
to reduce or repeal any such sales tax rate. 99
4. The brackets required to be established by the 100
director of revenue under the provisions of section 144.285 101
shall be based upon the sum of the combined rate of the 102
state sales tax and all local sales taxes imposed under the 103
provisions of the local sales tax law. 104
5. (1) The ordinance or order imposing a local sales 105
tax under the local sales tax law shall impose a tax upon 106
all transactions upon which the Missouri state sa les tax is 107
imposed to the extent and in the manner provided in sections 108
144.010 to 144.525, and the rules and regulations of the 109
director of revenue issued pursuant thereto; except that the 110
rate of the tax shall be the sum of the combined rate of the 111
state sales tax or state highway use tax and all local sales 112 SB 759 5
taxes imposed under the provisions of the local sales tax 113
law. 114
(2) Notwithstanding any other provision of law to the 115
contrary, local taxing jurisdictions, except those in which 116
voters have approved a local use tax under section 144.757, 117
shall have placed on the ballot on or after the general 118
election in November 2014, but no later than the general 119
election in November 2022, whether to repeal application of 120
the local sales tax to the titling of motor vehicles, 121
trailers, boats, and outboard motors that are subject to 122
state sales tax under section 144.020 and purchased from a 123
source other than a licensed Missouri dealer. The ballot 124
question presented to the local voters shall contai n 125
substantially the following language: 126
127
128
129
130
131
132
Shall the _________ (local jurisdiction's name)
discontinue applying and collecting the local
sales tax on the titling of motor vehicles,
trailers, boats, and outboard motors that were
purchased from a source other than a licensed
Missouri dealer?
133
134
135
136
137
138
139
140
Approval of this measure will result in a
reduction of local revenue to provide for vital
services for _________ (local jurisdiction's
name) and it will place Missouri dealers of motor
vehicles, outboard motors, boats, and trailers at
a competitive disadvantage to non -Missouri dealers
of motor vehicles, outboard motors, boats, and
trailers.
141 □ YES □ NO
142
143
144
145
If you are in favor of the question, place an "X"
in the box opposite "YES". If you are opposed to
the question, place an "X" in the box opposite
"NO".
SB 759 6
(3) If the ballot question set forth in subdivision 146
(2) of this subsection re ceives a majority of the votes cast 147
in favor of the proposal, or if the local taxing 148
jurisdiction fails to place the ballot question before the 149
voters on or before the general election in November 2022, 150
the local taxing jurisdiction shall cease applyin g the local 151
sales tax to the titling of motor vehicles, trailers, boats, 152
and outboard motors that were purchased from a source other 153
than a licensed Missouri dealer. 154
(4) In addition to the requirement that the ballot 155
question set forth in subdivi sion (2) of this subsection be 156
placed before the voters, the governing body of any local 157
taxing jurisdiction that had previously imposed a local use 158
tax on the use of motor vehicles, trailers, boats, and 159
outboard motors may, at any time, place a propos al on the 160
ballot at any election to repeal application of the local 161
sales tax to the titling of motor vehicles, trailers, boats, 162
and outboard motors purchased from a source other than a 163
licensed Missouri dealer. If a majority of the votes cast 164
by the registered voters voting thereon are in favor of the 165
proposal to repeal application of the local sales tax to 166
such titling, then the local sales tax shall no longer be 167
applied to the titling of motor vehicles, trailers, boats, 168
and outboard motors purc hased from a source other than a 169
licensed Missouri dealer. If a majority of the votes cast 170
by the registered voters voting thereon are opposed to the 171
proposal to repeal application of the local sales tax to 172
such titling, such application shall remain in effect. 173
(5) In addition to the requirement that the ballot 174
question set forth in subdivision (2) of this subsection be 175
placed before the voters on or after the general election in 176
November 2014, and on or before the general election in 177 SB 759 7
November 2022, whenever the governing body of any local 178
taxing jurisdiction imposing a local sales tax on the sale 179
of motor vehicles, trailers, boats, and outboard motors 180
receives a petition, signed by fifteen percent of the 181
registered voters of such jurisdic tion voting in the last 182
gubernatorial election, and calling for a proposal to be 183
placed on the ballot at any election to repeal application 184
of the local sales tax to the titling of motor vehicles, 185
trailers, boats, and outboard motors purchased from a s ource 186
other than a licensed Missouri dealer, the governing body 187
shall submit to the voters of such jurisdiction a proposal 188
to repeal application of the local sales tax to such 189
titling. If a majority of the votes cast by the registered 190
voters voting thereon are in favor of the proposal to repeal 191
application of the local sales tax to such titling, then the 192
local sales tax shall no longer be applied to the titling of 193
motor vehicles, trailers, boats, and outboard motors 194
purchased from a source other t han a licensed Missouri 195
dealer. If a majority of the votes cast by the registered 196
voters voting thereon are opposed to the proposal to repeal 197
application of the local sales tax to such titling, such 198
application shall remain in effect. 199
(6) Nothing in this subsection shall be construed to 200
authorize the voters of any jurisdiction to repeal 201
application of any state sales or use tax. 202
(7) If any local sales tax on the titling of motor 203
vehicles, trailers, boats, and outboard motors purchased 204
from a source other than a licensed Missouri dealer is 205
repealed, such repeal shall take effect on the first day of 206
the second calendar quarter after the election. If any 207
local sales tax on the titling of motor vehicles, trailers, 208
boats, and outboard mo tors purchased from a source other 209 SB 759 8
than a licensed Missouri dealer is required to cease to be 210
applied or collected due to failure of a local taxing 211
jurisdiction to hold an election pursuant to subdivision (2) 212
of this subsection, such cessation shall ta ke effect on 213
March 1, 2023. 214
(8) Notwithstanding any provision of law to the 215
contrary, if any local sales tax on the titling of motor 216
vehicles, trailers, boats, and outboard motors purchased 217
from a source other than a licensed Missouri dealer is 218
repealed after the general election in November 2014, or if 219
the taxing jurisdiction failed to present the ballot to the 220
voters at a general election on or before November 2022, 221
then the governing body of such taxing jurisdiction may, at 222
any election subsequent to the repeal or after the general 223
election in November 2022, if the jurisdiction failed to 224
present the ballot to the voters, place before the voters 225
the issue of imposing a sales tax on the titling of motor 226
vehicles, trailers, boats, and outb oard motors that are 227
subject to state sales tax under section 144.020 that were 228
purchased from a source other than a licensed Missouri 229
dealer. The ballot question presented to the local voters 230
shall contain substantially the following language: 231
232
233
234
235
236
237
Shall the _________ (local jurisdiction's name)
apply and collect the local sales tax on the
titling of motor vehicles, trailers, boats, and
outboard motors that are subject to state sales
tax under section 144.020 and purchased from a
source other than a licensed Missouri dealer?
238
239
240
241
242
243
Approval of this measure will result in an
increase of local revenue to provide for vital
services for _________ (local jurisdiction's
name), and it will remove a competitive advantage
that non-Missouri dealers of motor vehicles,
outboard motors, boats, and trailers have over
SB 759 9
(9) If any local sales tax on the titling of motor 251
vehicles, trailers, boats, and outboard motors purchased 252
from a source other than a licensed Missouri dealer is 253
adopted, such tax shall take effect and be imposed on the 254
first day of the second calendar quarter after the election. 255
6. On and after the effective date of any local sales 256
tax imposed under the provisions of the local sales tax law, 257
the director of revenue shall perform all functions incident 258
to the administration, collection, enforcement, and 259
operation of the tax, and the director of revenue shall 260
collect in addition to the sales tax for the state of 261
Missouri all additional local sales taxes authorized under 262
the authority of the local sales tax law. All local sales 263
taxes imposed under the local sales tax law together with 264
all taxes imposed under the sal es tax law of the state of 265
Missouri shall be collected together and reported upon such 266
forms and under such administrative rules and regulations as 267
may be prescribed by the director of revenue. 268
7. All applicable provisions contained in sections 269
144.010 to 144.525 governing the state sales tax and section 270
32.057, the uniform confidentiality provision, shall apply 271
to the collection of any local sales tax imposed under the 272
local sales tax law except as modified by the local sales 273
tax law. 274
244
245
Missouri dealers of motor vehicles, outboard
motors, boats, and trailers.
246 □ YES □ NO
247
248
249
250
If you are in favor of the question, place an "X"
in the box opposite "YES". If you are opposed to
the question, place an "X" in the box opposite
"NO".
SB 759 10
8. All exemptions granted to agencies of government, 275
organizations, persons and to the sale of certain articles 276
and items of tangible personal property and taxable services 277
under the provisions of sections 144.010 to 144.525, as 278
these sections now read and as they may hereafter be 279
amended, it being the intent of this general assembly to 280
ensure that the same sales tax exemptions granted from the 281
state sales tax law also be granted under the local sales 282
tax law, are hereby made applicable to the imposi tion and 283
collection of all local sales taxes imposed under the local 284
sales tax law. 285
9. The same sales tax permit, exemption certificate 286
and retail certificate required by sections 144.010 to 287
144.525 for the administration and collection of the st ate 288
sales tax shall satisfy the requirements of the local sales 289
tax law, and no additional permit or exemption certificate 290
or retail certificate shall be required; except that the 291
director of revenue may prescribe a form of exemption 292
certificate for an exemption from any local sales tax 293
imposed by the local sales tax law. 294
10. All discounts allowed the retailer under the 295
provisions of the state sales tax law for the collection of 296
and for payment of taxes under the provisions of the state 297
sales tax law are hereby allowed and made applicable to any 298
local sales tax collected under the provisions of the local 299
sales tax law. 300
11. The penalties provided in section 32.057 and 301
sections 144.010 to 144.525 for a violation of the 302
provisions of those sections are hereby made applicable to 303
violations of the provisions of the local sales tax law. 304
12. (1) For the purposes of any local sales tax 305
imposed by an ordinance or order under the local sales tax 306 SB 759 11
law, all sales, except the sale of moto r vehicles, trailers, 307
boats, and outboard motors required to be titled under the 308
laws of the state of Missouri, shall be deemed to be 309
consummated at the place of business of the retailer unless 310
the tangible personal property sold is delivered by the 311
retailer or his agent to an out -of-state destination. In 312
the event a retailer has more than one place of business in 313
this state which participates in the sale, the sale shall be 314
deemed to be consummated at the place of business of the 315
retailer where the initial order for the tangible personal 316
property is taken, even though the order must be forwarded 317
elsewhere for acceptance, approval of credit, shipment or 318
billing. A sale by a retailer's agent or employee shall be 319
deemed to be consummated at the p lace of business from which 320
he works. 321
(2) For the purposes of any local sales tax imposed by 322
an ordinance or order under the local sales tax law, the 323
sales tax upon the titling of all motor vehicles, trailers, 324
boats, and outboard motors shall be imposed at the rate in 325
effect at the location of the residence of the purchaser, 326
and remitted to that local taxing entity, and not at the 327
place of business of the retailer, or the place of business 328
from which the retailer's agent or employee works. 329
(3) For the purposes of any local tax imposed by an 330
ordinance or under the local sales tax law on charges for 331
mobile telecommunications services, all taxes of mobile 332
telecommunications service shall be imposed as provided in 333
the Mobile Telecommunica tions Sourcing Act, 4 U.S.C. 334
Sections 116 through 124, as amended. 335
13. Local sales taxes shall not be imposed on the 336
seller of motor vehicles, trailers, boats, and outboard 337
motors required to be titled under the laws of the state of 338 SB 759 12
Missouri, but shall be collected from the purchaser by the 339
director of revenue at the time application is made for a 340
certificate of title, if the address of the applicant is 341
within a taxing entity imposing a local sales tax under the 342
local sales tax law. 343
14. The director of revenue and any of his deputies, 344
assistants and employees who have any duties or 345
responsibilities in connection with the collection, deposit, 346
transfer, transmittal, disbursement, safekeeping, 347
accounting, or recording of funds which come into the hands 348
of the director of revenue under the provisions of the local 349
sales tax law shall enter a surety bond or bonds payable to 350
any and all taxing entities in whose behalf such funds have 351
been collected under the local sales tax law in the amo unt 352
of one hundred thousand dollars for each such tax; but the 353
director of revenue may enter into a blanket bond covering 354
himself and all such deputies, assistants and employees. 355
The cost of any premium for such bonds shall be paid by the 356
director of revenue from the share of the collections under 357
the sales tax law retained by the director of revenue for 358
the benefit of the state. 359
15. The director of revenue shall annually report on 360
his management of each trust fund which is created under the 361
local sales tax law and administration of each local sales 362
tax imposed under the local sales tax law. He shall provide 363
each taxing entity imposing one or more local sales taxes 364
authorized by the local sales tax law with a detailed 365
accounting of the source of all funds received by him for 366
the taxing entity. Notwithstanding any other provisions of 367
law, the state auditor shall annually audit each trust 368
fund. A copy of the director's report and annual audit 369 SB 759 13
shall be forwarded to each taxing entity i mposing one or 370
more local sales taxes. 371
16. Within the boundaries of any taxing entity where 372
one or more local sales taxes have been imposed, if any 373
person is delinquent in the payment of the amount required 374
to be paid by him under the local sales tax law or in the 375
event a determination has been made against him for taxes 376
and penalty under the local sales tax law, the limitation 377
for bringing suit for the collection of the delinquent tax 378
and penalty shall be the same as that provided in sections 379
144.010 to 144.525. Where the director of revenue has 380
determined that suit must be filed against any person for 381
the collection of delinquent taxes due the state under the 382
state sales tax law, and where such person is also 383
delinquent in payment of ta xes under the local sales tax 384
law, the director of revenue shall notify the taxing entity 385
in the event any person fails or refuses to pay the amount 386
of any local sales tax due so that appropriate action may be 387
taken by the taxing entity. 388
17. Where property is seized by the director of 389
revenue under the provisions of any law authorizing seizure 390
of the property of a taxpayer who is delinquent in payment 391
of the tax imposed by the state sales tax law, and where 392
such taxpayer is also delinquent in payment of any tax 393
imposed by the local sales tax law, the director of revenue 394
shall permit the taxing entity to join in any sale of 395
property to pay the delinquent taxes and penalties due the 396
state and to the taxing entity under the local sales tax 397
law. The proceeds from such sale shall first be applied to 398
all sums due the state, and the remainder, if any, shall be 399
applied to all sums due such taxing entity. 400 SB 759 14
18. If a local sales tax has been in effect for at 401
least one year under the provision s of the local sales tax 402
law and voters approve reimposition of the same local sales 403
tax at the same rate at an election as provided for in the 404
local sales tax law prior to the date such tax is due to 405
expire, the tax so reimposed shall become effective the 406
first day of the first calendar quarter after the director 407
receives a certified copy of the ordinance, order or 408
resolution accompanied by a map clearly showing the 409
boundaries thereof and the results of such election, 410
provided that such ordinance, order or resolution and all 411
necessary accompanying materials are received by the 412
director at least thirty days prior to the expiration of 413
such tax. Any administrative cost or expense incurred by 414
the state as a result of the provisions of this subsect ion 415
shall be paid by the city or county reimposing such tax. 416